INSTITUT FÜR VOLKSWIRTSCHAFTSLEHRE
JOHANNES KEPLER UNIVERSITÄT LINZ
Outsourcing and Skill-Specific Employment
in a Small
Economy:
Titel
Austria and the Fall of the Iron Curtain
Untertitel
von
von
Hartmut EGGER
*)
Autor(en)
Peter
EGGER*)
Arbeitspapier Nr.
Nr. 0024
xxxx
Arbeitspapier
Datum
Oktober 2000
Johannes Kepler Universität Linz
Institut für Volkswirtschaftslehre
Altenberger Straße 69
A-4040 Linz - Auhof, Austria
www.economics.uni-linz.ac.at
*)
Korrespondierender Autor:
[email protected]
[email protected]
Tel. +43 (0)70
Tel. +43
2468
–1-7982601-475
-xxx, -xxx (Fax)
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58
Table 1: The Determinants of Austrian Outsourcing into Eastern Economies
1990-1998
1)
2)
Specification I
Dependent Variable
3)
Unit Labor Costs in Eastern Countries (ULCE)
Tariff Barriers (TB)
5)
Non-Tariff Barriers Dummy (NTBD)
6)
Non-Tariff Barriers Interaction (NTBI)
Constant
Statistics (N=20; T=9)
Observations
2
Adj. R
7)
4)
Specification II
β
Std. error
β
Std. error
-0.89
0.313
**)
-0.83
0.294
**)
-0.43
0.124
**)
-0.41
0.122
**)
0.60
0.160
**)
0.56
0.158
**)
-0.01
0.009
-0.01
0.009
-6.03
0.567
-6.70
8)
0.598
**)
p-value
p-value
180
180
0.89
9)
Time Effects: F (8, 148)
Industry Effects: F (19, 148)
9)
**)
0.89
2.96
0.004
**)
66.92
0.000
**)
3.12
0.003
**)
62.09
0.000
**)
1) Outsourcing to Eastern countries measured in percent of gross production. - 2) Outsourcing to Eastern
countries measured in percent of intermediate inputs. - 3) All variables are in logs. Parameter estimates for
fixed time and industry effects are not reported in order to save space. Only heteroskedasticity consistent
standard errors are reported. - 4) ULCE are wages per unit of output, with 1993 as the base year.
5) Simple average applied most favored nation (MFN) tariff rate. - 6) Dummy variable which is 1, if nontariff barriers are reported, 0 otherwise. - 7) Interaction term with NTBD, which takes the value of the
simple frequency ratio of NTBs if NTBD is 1, and 0 otherwise. - 8) Degrees of freedom in parentheses.
9) F-tests for testing the restriction of joint zero parameters for the respective effects (fixed time and
industry effects). - **) significant at 5 percent, *) significant at 10 percent.
Table 2: Skill-specific Relative Employment and Outsourcing in Austria 1990-1998
Two-stage Least Squares Estimation Results. Dependent Variable is Log of High-skilled Relative to Low-skilled Employment
1) 3)
2) 3)
Specification 1
Dependent Variable
β
5)
Outsourcing (OY)
0.10
Outsourcing (OI)
Relative Wage Rate (RW)
Export Openness (XY)
6)
Import Openness (MY)
Capital Output Ratio (KY)
Constant
Statistics (N=20; T=9)
Observations
2
Adj. R
0.040
-
-0.93
1.056
**)
0.074
**)
-0.25
0.014
**)
-0.24
2.20
0.119
0.839
**)
7)
**)
-
8)
Industry Effects: F (19, 146)
8)
8)
Outlier Effects: F(3, 143)
Normal Distribution I: adj. χ
2 9)
10)
11)
Endogeneity (OUT)
12)
Instrument Relevance: R p (RWAGE)
β
Std. error
0.031
-0.07
0.850
**)
Specification 4
Std. error
0.04
0.018
-
-
-0.79
0.990
0.070
**)
-0.25
0.086
**)
-0.07
1.34
0.115
0.755
0.069
-0.22
0.073
-0.22
1.49
0.096
0.717
**)
-0.15
1.44
0.097
0.625
179
179
0.98
0.98
0.98
0.98
0.98
0.457
0.89
0.526
389.19
0.000
**)
464.45
0.000
5.98
0.001
**)
-
-
1.84
0.398
4.64
0.098
1.01
0.155
0.43
0.332
0.126
6.82
0.009
**)
*)
**)
1.46
0.178
1.31
0.245
440.83
0.000
**)
311.49
0.000
6.07
0.001
**)
-
-
1.84
0.398
4.64
0.098
1.01
0.155
0.43
0.332
-
-
-
-
0.50
0.57
-
-
Overidentification χ (m)
2.31
5.74
0.125
RESET: F(3, 144)
14)
7.17
0.315
0.000
1.60
**)
6.69
0.450
0.000
**)
7.17
*)
p-value
179
Instrument Relevance: R p (OUT)
13)
**)
p-value
0.19
2
0.209
0.20
0.26
12)
0.02
**)
0.21
2
-
0.060
-0.36
p-value
-
1.232
**)
**)
Std. error
-1.36
0.066
0.17
β
**)
**)
0.28
**)
179
2.50
2
2) 4)
Specification 3
0.08
p-value
Time Effects: F (8, 146)
Normal Distribution II
β
Std. error
0.23
6)
1) 4)
Specification 2
**)
*)
0.19
0.000
**)
-
-
1.60
0.450
6.69
0.000
**)
1) Outsourcing to Eastern countries measured as percent of gross production. - 2) Outsourcing to Eastern countries measured as percent of intermediate inputs. - 3) Relative wages and outsourcing
are instrumented according to the degree of trade union organisation (ORG), price cost margin (PCM), median firm size (MSIZE), trade barriers (TB), non-tariff barrier dummy (NTBD), and nontariff barrier interaction term (NTBI). - 4) Only relative wages are instrumented according to the degree of trade union organisation (ORG), price cost margin (PCM), median firm size (MSIZE), and
tariff barriers to trade (TB). - 5) All variables are in logs. Parameter estimates for fixed time and industry effects as well as for outlier dummies are not reported in order to save space. - 6) Exports
(imports) as percent of industry gross production. - 7) Degrees of freedom in parentheses. - 8) F-tests for testing the restriction of joint zero parameters for the respective effects (outlier dummies,
fixed time and industry effects). - 9) Combined Skewness/Kurtosis test for normality, Royston (1991). 10) Shapiro-Wilk W test for normal data (Royston 1991); asymptotically following a
2
normal distribution. - 11) Hausman test on the endogeneity of outsourcing, Hausman (1978), Greene (1997). - 12) Partial R diagnostics testing for instrumental relevance, Shea (1997).
2
13) Testing the validity of instruments based on overidentifying restrictions, under the null being distributed as χ (number of overidentifying restrictions, m), Davidson & MacKinnon (1993, p. 236).
14) Ramsey RESET test using powers of the fitted values of the dependent. - **) significant at 5 percent.
Table 3: Three-Stage Least Squares Systems Estimation Results
Dependent Variable is Log of High-skilled Relative to Low-skilled Employment in Heads
1) 3)
2) 3)
Specification A
Dependent Variable
β
5)
Outsourcing (OY)
0.10
Outsourcing (OI)
Relative Wage Rate (RW)
1) 4)
Specification B
β
Std. error
0.036
-
-
-0.93
0.944
**)
-
2) 4)
Specification C
β
Std. error
-
0.08
0.025
0.06
0.731
**)
Specification D
Std. error
0.12
0.026
-
-
-0.61
0.520
-
-
0.08
0.027
**)
-0.21
0.612
0.054
**)
0.29
0.058
**)
0.23
0.066
Import Openness (MY)
-0.25
0.073
**)
-0.37
0.062
**)
-0.33
0.057
**)
-0.36
0.060
**)
Capital Output Ratio (KY)
-0.24
0.106
**)
-0.22
0.086
**)
-0.35
0.081
**)
-0.22
0.084
**)
2.20
0.750
**)
1.47
0.614
**)
1.90
0.562
**)
1.59
0.605
**)
Statistics (N=20; T=9; 3 Equations)
Observations
2
7)
R Relative Employment
2
7)
R Relative Wages
2
R Outsourcing
7)
6)
p-value
p-value
Time effects: χ (24, 148)
8)
Industry effects: χ (57, 148)
2
Outlier Effects: χ (9, 143)
2
8)
8)
p-value
p-value
179
179
179
179
0.986
0.988
0.989
0.987
0.942
0.943
0.942
0.941
0.935
2
0.26
Std. error
Export Openness (XY)
Constant
0.058
β
**)
0.28
**)
**)
0.942
0.947
75.79
0.000
**)
13721.83
0.000
**)
14041.82
0.000
32.00
0.000
**)
-
-
80.99
0.000
**)
86.57
**)
0.940
0.000
**)
74.22
0.000
**)
17723.39
0.000
**)
15300.01
0.000
**)
48.04
0.000
**)
-
-
1) Outsourcing to Eastern countries measured as percent of gross production. - 2) Outsourcing to Eastern countries measured as percent of intermediate inputs. - 3) Relative wages and
outsourcing in Specification A (Specification B) are instrumented as in Specification 1 (Specification 2), Table 2. - 4) Relative wages are instrumented according to the degree of trade
union organisation (ORG), price cost margin (PCM), and medium industry firm size (MSIZE); outsourcing is instrumented by trade barriers (TB), non-tariff barrier dummy (NTBD),
non-tariff barrier interaction term (NTBI), and unit labor costs in Eastern countries (ULCE). - 5) All variables are in logs. Parameter estimates for fixed time and industry effects, as well
2
as for outlier dummies, are not reported in order to save space. - 6) Degrees of freedom in parentheses. - 7) R for the respective equation. - 8) Likelihood ratio test, testing for joint zero
parameters for fixed time effects, fixed industry effects, and outlier effects, respectively. - **) significant at 5 percent.